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Cazoo drives off to the SPAC races with a $8b valuationINTL

Cazoo drives off to the SPAC races with a $8b valuation

Our SPAC-of-the-day goes out to Cazoo! The British car seller is going public on the New York Stock Exchange via a merger deal with the blank check firm AJAZ I Acquisition Corp. Once successful, the initial public listing will bring Cazoo’s valuation up to $8b — quite the upgrade from its previous $2.6b valuation back in October.

Cazoo (which offers online purchase and delivery services of used vehicles in the UK and the rest of Europe) has a fitting business model for these pandemic times — and it seems like certain Covid-19 trends are here to stay.

why it matters
The US is a more secure option for companies looking to go public (especially via the popular SPAC route) at the moment due to the uptick in capital market valuations. American firm Carvana (CVNA), which operates a business similar to Cazoo’s, saw its stock grow by over 400% in the last year alone.